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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING MANUALpage 9.18DisclosureIn addition, green certificates schemes can be supported by policy measures suchas the disclosure of the generation source of electricity on consumers’ bills.Disclosure is based on the assumption that in a competitive market, consumers maychose to buy their power from less environmentally damaging forms of generationrather than solely allowing their choice to be dictated by the price. Disclosurerequirements can include information on the type of generation, the amount of carbondioxide emitted per kWh or the amount of radioactive waste produced.Green powerA related issue is selling “green” power to consumers in markets where consumerscan chose their supplier. This assumes the presence of a retail competitivepower market—this has yet to be tried in Africa. This is again based on thepremise that some consumers would include environmental performance in theirchoice of power supplier.Green power schemes offer a way for suppliers to differentiate their product, andoften to charge a premium for it over market prices for “brown power”. In somemarkets, such as the UK, this has led to a situation where suppliers are obligedto provide a certain proportion of their power from renewable sources under therenewable obligation, but some have chosen to fulfil this obligation by marketingthe green power separately from their standard product and to charge a premiumfor it. This approach allows them to offset any additional costs ofcontracting for renewable output—or even to profit from the fact that they areobliged to contract for it. Other companies have chosen to contract for greenpower in addition to any renewable obligation they might have.Voluntary schemes rely on support from other measures to drive a viable market.Information provided to environmentally conscious consumers could act asa driver, as can the marketing opportunities of supplying green electricity.Concerns have been raised that green power schemes do not necessarily encouragenew construction, but rather maintain output from older schemes. This canbe avoided by devising schemes, which explicitly state that revenue from ascheme will be used to build new renewable projects.Various hybrid schemes involving two of the above mechanismsSome countries—notably Spain and Belgium—have chosen a mixture of supportmechanisms to drive renewable energy development. The strength of this
MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.19approach is that it allows the strengths of individual mechanisms to be adopted,and for the weaknesses to be compensated for by other measures.The flexibility of hybrid schemes also allows investors to choose which aspect ofthe scheme suits their finances and the type of project best.5.3. Regulatory and policy support mechanismsin practiceRegulatory/support mechanisms for renewable technologies are relatively newpolicy and regulatory measures, and have often been in place for only a few years.In Africa, the experience with such mechanisms is even more limited. Given thelength of time it can take to develop new projects, evidence of their success orotherwise can therefore only be presented as indicative.In addition, many of the support mechanisms in place have tended to concentrateon wind power, as this the most developed renewable technology. Thismeans that other renewable technologies, which may be more appropriate inother countries, may have been neglected by the available support measures.However, on the basis of the schemes to date, it appears that tariff schemes havebeen more successful than tender and quota schemes at encouraging the deploymentof wind power in particular—installed capacity of onshore wind in Denmark,Germany and latterly Spain far outweigh installed capacity in other countries whichhave adopted more of the competitive tender and quota mechanisms (see figure I).Figure I.Onshore wind cumulative installed capacity (MW)1600014000MW1200010000800060004000DenmarkGermanyItalyNetherlandsSpainUnited Kingdom200001995 1997 1999 2001 2003
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